WELCOME

CONFIGURATION
TO
ENTERPRISE STRUCTURE (FI)
Compiled By S.N.HEGDE

Topics
A) FI Organization
B) Chart of Accounts
C) Company Code Configuration
D) Business Area & Functional Area
E) Validation & Substitution
F) Sales Tax & Use Tax

A)FI ORGANIZATION
CHART

Preface.
All Business Processes of other modules result in financial
Implications. You must remember that almost everything else that
other modules do, affects FI/CO, and sometimes they dont know
it. Thus FI / CO is the base of all other SAP applications. It takes
inputs from other modules and generates MIS & External Reports

Preface.
Hence Enterprise Structure is the key building block to your
organization. It is very important to carefully analyze your
organization before setting up the FI enterprise structure. Before
configuring any part of the FI structure, it is vital to have already
drawn out structure which comprises chart of account, fiscal year
company code, business areas, functional areas etc.

FIFI -Organizational
Chart
Organizational Chart
(A Graphical Representation )
C lie n t
Com pany
A B C G ro u p o f C o m p a n ie s
Com pany Code 1
A L td

Com pany Code 2

B L td

Com pany Code 3

C L td

Com pany
G ro w e l G ro u p o f C o s
Com pany code1
G ra u e r & W e il

Business Area 1
Business Area 2
Business Area 3

FI - Organizational Chart
Client :
It is a self contained unit in R/3 system, with separate master records
and its own set of tables
Thus Client is a logical system or a self contained technical entity.

Company :
It is a unit that represents a Business Organization according to
requirements of commercial laws.
It may be a single legal entity or group of several legal entities.
Consolidation in SAP is based on COMPANY.

B) CHART OF ACCOUNTS

Charts of Accounts
INT

CAUS

GKR

1000

10000

1000

2000

20000

2000

... and as many

additional charts
as needed!

C) COMPANY CODE
CONFIGURATION

Company Code
Independent
accounting
entity

Company
code

- Operating COA (Chart of Account)

- Group COA
- Country COA
These types of COA can be maintained.
One COA can be assigned to multiple
company codes. But one company code can
have only single COA (operating).

C h a r t o f A c c o u n t s A s s ig n m e n t
C h a rt o f A c c o u n ts
BAJ
com pany code 1
B a ja j A u t o L t d .

com pany code 2

B a ja j T e m p o L t d .

D) BUSINESS AREA
& FUNCTIONAL AREA

Business Area
Divisions

Business areas

Textile
Machinery

Cooling
Appliances

Machine
Handling

1033

TMD

1011

CABD

1032

MHBD

Organizational Structure of Growel Group

Client

Company

Company Code

Growel Group of Companies

Company
Growel Softech Ltd.

Vapi
Plant
Business Area

Grauer & Weil (I) Ltd

Pune
Plant

Kandiwali
Plant

Digikore Studios Ltd

Barotiwala
Plant

FIFI -Organizational
Chart
Organizational Chart
(A Graphical Representation )
C lie n t
Com pany
A B C G ro u p o f C o m p a n ie s
Com pany Code 1
A L td

Com pany Code 2

B L td

Com pany Code 3

C L td

Com pany
G ro w e l G ro u p o f C o s
Com pany code1
G ra u e r & W e il

Business Area 1
Business Area 2
Business Area 3

Chart of Accounts Assignment

Chart of
Accounts
1000

Company code 1000

Company code 7100

Company code 7200

Company Code Specific Settings

Account definition
in chart of accounts
Account X

PLUS

PLUS

Company code
specific settings

Company code
specific settings

CC 1000

CC 7100

Account X in company code 1000

Account X in company code 7100

E) VALIDATION
& SUBSTITUTION

F) SALES TAX & USE TAX

Exercises
Create Chart of Accounts
Create Fiscal Year Variant
Create Posting Period Variant
Create Credit Control Area
Create Company Code
Assign Company Code to a Chart of Accounts
Assign Company Code to Fiscal Year Variant
Create Business Areas
Create Functional Areas
Assign Company Code to Credit Control Area
Assign permitted Credit Control Areas to
Company Code
Determine Tax Version